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President NIO: NIO will not close down, nor can it close down.

2024-03-03 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)11/18 Report--

At the scene of the 2023 Guangzhou Auto Show, Qin Lihong, co-founder and president of NIO, said: "the current market is full of huge opportunities and has put forward higher requirements for every company. in the face of the current market opportunity, we should not only strive to seize it, but also maintain strategic strength. NIO will not fail, and it is impossible to close down. Please rest assured to buy and experience the cars from NIO, and believe in the products and services of all China's new energy brands."

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Earlier this month, Li Bin released an internal letter from "organizational Optimization and two-year Priorities", confirming that about 10% of the posts in NIO will be reduced, and the specific adjustment will be completed in November. Li Bin said, "I am sorry that this adjustment will affect some colleagues, and please understand that this is a difficult decision that the company has to make in the face of fierce market competition." Immediately after that, the Alps of the NIO sub-brand was also exposed to relevant job cuts, and then it may no longer be an independent project.

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In fact, layoffs are not a bad thing for NIO, especially in the context of huge losses, reducing costs and increasing efficiency has become an inevitable choice. According to insiders close to NIO, the direct trigger for layoffs is that NIO's third-quarter results fell short of expectations, and the actual situation is still far from expectations after the implementation of the price reduction plan, making the management not optimistic about the future situation. According to public financial reports, from 2018 to 2022, the net profits of NIO Home were-23.328 billion yuan,-11.413 billion yuan,-5.611 billion yuan,-10.572 billion yuan and-14.559 billion yuan respectively, with a net loss of 10.926 billion yuan in the first half of 2023, an increase of 139.08% over the same period last year.

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Also at the beginning of this month, Ulai released the latest delivery results, delivering a total of 126100 vehicles in the first 10 months of 2023, an increase of 36.30% over the same period last year, but still nearly 120000 vehicles short of the annual sales target of 240000 vehicles. Overall, delivery volume seems to have begun to grow steadily, but not as fast as other new brands. In order to qualify for the finals in the context of increased market competition, it is necessary to further improve the efficiency of execution and ensure that key businesses are fully resourced.

Earlier, according to the 36Kr report, the domestic car-building new power company has passed on the sales forecast for 2024 to the supply side. Among them, NIO expects to deliver more than 230000 new cars in 2024, refining the target to monthly, which needs to be completed about 19000 per month. It should be noted that the above sales forecasts do not include sub-brands. It is understood that in 2024, NIO will not launch new models, but will focus on the sub-brand-Alps brand, the first model will be launched in 2024. In Li Bin's view, the car competitiveness of the second-generation platform can be maintained for more than two years, but the market is rapidly changing and extremely inward, so that the advantage of NIO is no longer the advantage.

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After entering 2024, the competition in China's automobile market will be more fierce, the ideal car will launch a number of pure electric models, the ideal L6 of 20-300000 yuan will have a direct impact on NIO, and the first model of Xiaomi will be put on the market in mass production. Huawei, on the basis of the existing Cyrus and Chery, will launch other "boundary" brands with BAIC and Jianghuai. At that time, how to rely on existing models to ensure stable sales is also a huge problem. Xilai sub-brand Alps will be the hope of Xilai in 2024, this brand may have a lower market price, but it will also face competitors including BYD, Tesla, Xiaopeng Motor, Xiaomi Automobile and so on. at that time, the survival pressure of the Alps brand will also be greatly increased.

Perhaps, as Qin Lihong said, NIO will not close down, but who knows in the future, like many brands at the beginning, they have made brilliant achievements in China, but they are also faced with the choice of withdrawing from the market in the end. Nowadays, we still need continuous blood transfusion of capital, but repeated construction, inefficient organization, lack of cost control, and huge business territory make Lai once again face challenges.

Perhaps, NIO will not be like 2019, but today after 2023, what NIO lacks is not only money, but also investment confidence in the capital market, which continues to need to be clear and thoughtful.

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